Companies said that the rating and toknation startup of global credit rating giant Moody and Alfalder completed a test run that shows that municipal bond credit ratings can be embedded in blockchain-based securities.
Testing, conducted on Solana
Blockchain, shows how credit ratings – usually distributed through ownership data terminals – can be integrated into tokens on public blockchain.
In evidence of the concept, a fake municipality bond was token using the alphalder platform. The credit rating of bonds provided by Moody’s was automatically presented and the token on-chain. The project used an API to transfer data from Moody’s off-chain system to the public blockchain of Solana.
For institutional investors navigating decentralized markets, lack of standardized, reliable information remains a hindrance. By cooking a known credit rating in the safety tokens, traders and portfolio managers can take more informed about debt devices in real time.
Alfelder CEO Manish Dutta said, “We have demonstrated a potential scalable model that can unlock liquidity in real world property by providing access to a reliable brand such as Moody’s ratings.”
The test highlights how blockchain tech can supplement the existing financial plumbing, as the increasing number of traditional finance giants detects ways to use crypto rail for real -world assets (RWA) such as bonds, funds and credit.
The procedure, often called Tokenization, promises more efficient operations, interoperability and rapid, round -the -centers than in heritage rail. This is potentially a huge market: Boston Consulting Group and Ripple estimated that the assets of tokens could be $ 18.9 trillion market by 2033.
Moody said that it would be revealed how its rating can serve digital finance. Future implementation may include other fixed income products such as corporate bonds.
Rajiv Bamra, the head of the strategy for the digital economy in the moodive rating, said, “We continue to embrace innovation in finance and detect a new path for digital finance ecosystem to reach our credit assessment.”
The test also demonstrated the ability of Solana to handle institutional-grade financial data, which combines the increasing RWA speed of the network.
Last month, Solan Foundation participated with a bank-centered blockchain tech firm R3 to bring real-world property to the network. A safe-carried out token funds of Apollo Credit Assets also started on the Solan-based DEFI protocol, while Centrifuse expanded the $ 400 million token of the Animoy to the US Conservation Fund on the series.
Read more: Major Tradfi Institute to pursue tokens efforts on Solana
